Is AMP Heading South?

Question

Hi Barefoot,

On advice from our financial adviser, my wife and moved our super from Australian Super to AMP MyNorth Super a year ago. We have generally been happy with the advice we have received and, like all funds, in the past year MyNorth has had its ups and down. However, with the findings of the banking royal commission and recent stock market volatilities affecting AMP, we think we should maybe go back to the industry fund. Is it likely AMP could go under in future, meaning we could lose all our super?

Cliff

Scott's Answer

Hi Cliff,

I’ve had a number of people ask me the same question ‒ whether their money is safe with AMP.

Let me be clear: your money is safe.

That’s because the money you have in super is held via a legal trust for you. ‘(and this applies to AMP as much as any super fund)’. Super is strictly regulated, and the trustees have a legal duty to manage the fund for the benefit of members.

However, the same can’t be said for the suffering AMP shareholders.

The very fact that so many of its customers are questioning whether this 170-year-old blue-blooded company will survive is an indication of just how much the brand has been battered.

As Dr Phil says, it’s hard to win back trust.

Speaking of which, I’d ask your advisor to do a financial comparison between your old industry fund and your MyNorth fund since you switched.

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A Note From Larry Our Lawyer

Information provided by the Barefoot Investor is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs.